Which of the Following Is Not a Reason Analyst Recommendations

question 83

Multiple Choice

Which of the following is not a reason analyst recommendations are often more optimistic than warranted by an objective analysis of the facts?

• A) Many analysts fail to grasp the gravity of the problems facing a company.
• B) Sell recommendations generate lower commissions than buy recommendations.
• C) The firms for which analysts work may have lucrative investment banking relationships with the firm.
• D) Analysts are often pressured by their superiors to overlook negative information.

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Definitions:

Contagion

The process by which extreme passions supposedly spread rapidly through a crowd like a contagious disease.

Labor Efficiency

The measure of the output (in terms of goods produced or services rendered) per unit of labor input.

Variance

The difference between planned, budgeted, or standard amounts and actual amounts in accounting and statistics.

July

The seventh month of the year in the Gregorian calendar.